PERTINENT HISTORY: Section 224(a) of the Social Security Act (the
Act) provides that when a DI beneficiary under age 62 also receives WC
benefits, the DI benefit is reduced so that the total benefits the
beneficiary and his or her family receive under the two programs do not
exceed 80 percent of his or her average pre-disability current earnings or
the maximum family benefits payable on the basis of his or her earnings.
Although the Act and regulations (§ 404.408(a)) provide an effective date
for a reduction due to entitlement to WC benefits -- the month after the
month the Social Security Administration (SSA) receives notice of a
beneficiary's entitlement to WC benefits -- the Act and regulations are
silent regarding the effective date for an offset due to an increase in
the WC benefit amount after the offset for the initial WC award is
applicable. The Social Security Administration's past policy was to make
this reduction effective with the actual month of the WC increase. For
purposes of uniformity, however, SSA is revising this policy so that the
effective date for a reduction of DI benefits because of an increase in WC
benefits is the same as that provided by statute for a reduction because
of an initial award of WC benefits.

POLICY STATEMENT: Reductions in DI benefits resulting from WC
increases are effective in the month after the month SSA receives notice
of the increase.

EFFECTIVE DATE: This policy applies to notices of WC increases
received by SSA on or after February 1, 1978.

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